I'm not sure...

[Lowdown3]

I'm not sure that TPTB aren't trying to CAUSE a series of bank runs??

http://www.telegraph.co.uk/finance/financialcrisis/9952979/Cyprus-bail-out-savers-will-be-raided-to-save-euro-in-future-crises-says-eurozone-chief.html

If you were in their position why would you announce these things ahead of time?

I can think of only two reasons-

1. To get people used to the idea.
2. To cause a bank run.

Thoughts?

[jimmycthemd]

IMHO it's probably more of number 1; get people used to the idea. Their bailout funds are probably insufficient to handle much more than the countries that are already applying for it. Between Cyprus, Italy, Spain and Ireland they're probably going to deplete all if not most of their reserves. The only way to preserve enough money in the reserves is to require investors/share holders/account holders to bear the initial burdon of the 'recapitalization' of the banks. Much like our own FDIC, their fund was not funded for bailing out several entire countries simultaneously. Our FDIC did its' job during the 80's S&L failures but, if the financial crisis was much more widespread, our own system would also fail.

Given the choice of the entire EU infrastructure failing and admiting that it can't 'solve world hunger', I actually think that admitting the shortcomings in advance of attempting the bailouts is actually the lesser of the evils.

My wish (not holding my breath) would be that folks both here and abroad pay attention to this and see how fragile the world economy really is. The main thing that keeps it afloat is the faith of the people who participate in it. That applies both to the world economy and national/local economies as well as governments. When people loose faith in any of the above, things start breaking down REAL fast.

[610Alpha]

yeah its hard to say...makes you wonder if that one billionaire libtard wasn't behind it....didn't he do that to the UK?

[Rmplstlskn]

Yes, it gets one to wonder what is the REAL plan in all this, for it sure isn't about building confidence...

Rmpl